ISLAMABAD (The Thursday Times) — Pakistan International Airlines (PIA), once a global aviation titan with a reputation for excellence, now lies mired in debt, political mismanagement, and shattered dreams. Its history reads like a saga of spectacular highs—flying to the farthest reaches of the world, opening international doors—and devastating lows, plagued by corruption, scandals, and wasted opportunities. From the glory of its apex to the murk of its decline, PIA’s story is one of ambition overshadowed by inefficiency.
The inception
PIA’s story began even before Pakistan’s independence. In 1946, Orient Airways was founded by M.A. Ispahani and other visionaries who wanted to establish a reliable airline for the subcontinent. After the creation of Pakistan in 1947, Orient Airways played a crucial role in airlifting refugees and providing essential travel services for the fledgling nation. By 1955, the government of Pakistan decided to nationalise and merge Orient Airways into what would officially become Pakistan International Airlines, laying the foundation for a new era in aviation.
Early triumphs
The 1950s and 1960s were defining decades for PIA. In 1960, the airline became the first in Asia to operate a jet aircraft, a Boeing 707. The historic flight from Karachi to London marked the beginning of PIA’s reputation as an industry pioneer. Four years later, PIA was the first non-communist airline to establish a route to China, showcasing Pakistan’s strategic geopolitical positioning. These achievements were not only remarkable feats of aviation but also essential diplomatic milestones, putting Pakistan on the global map.
PIA’s ambition did not stop at breaking new ground geographically. The airline was among the first to introduce in-flight entertainment and luxurious dining options, setting industry standards that even Western airlines struggled to match. The slogan “Great people to fly with” captured the airline’s commitment to providing world-class service, a promise it upheld through impeccable cabin crew training and customer service.
A global network
At its peak, PIA’s network spanned five continents, connecting Pakistan to major cities across the globe. From New York and Chicago in the West to Tokyo and Beijing in the East, PIA’s route map was extensive. It served as a vital link for the Pakistani diaspora and was instrumental in promoting tourism and business. The airline’s influence even extended into training future aviation giants; Emirates, now one of the world’s leading airlines, benefited from PIA’s operational guidance during its formative years in the 1980s.
PIA’s flights were more than just transportation; they were cultural experiences. The airline showcased Pakistani hospitality through authentic cuisine, multilingual flight attendants, and a focus on passenger comfort. This made PIA flights a cherished experience, earning the airline accolades from international travellers.
Strategic assets
The airline’s ambitious vision led to investments beyond aviation. In the 1970s, PIA acquired the Roosevelt Hotel in New York and the Scribe Hotel in Paris. These purchases were part of a broader strategy to stabilise the airline’s revenue and diversify its income streams. The Roosevelt Hotel, located in the heart of Manhattan, became a symbol of Pakistan’s presence on the world stage, while the Paris property catered to high-end clients and reinforced PIA’s global stature.
Initially, these assets proved valuable. The hotels generated substantial revenue and cemented PIA’s reputation as a multifaceted corporation. However, the airline’s lack of long-term planning and eventual financial struggles turned these properties into contentious liabilities. The debate over whether to sell, lease, or retain these assets became a political football, reflecting broader mismanagement within the company.
National pride, global reach
Throughout the 1970s and 1980s, PIA was a source of immense national pride. It played a key role in promoting Pakistan’s image abroad, even participating in social and cultural initiatives. The airline flew Pakistan’s cricket team to various tournaments and facilitated international tourism by offering special flights to scenic destinations like the Northern Areas. These initiatives not only boosted PIA’s brand but also promoted Pakistan’s cultural heritage on a global stage.
The airline also pioneered flights over the Himalayas, offering breathtaking views of K2 and other majestic peaks. These scenic flights were immensely popular among adventure seekers and served as a tourism draw. Yet, while the airline’s external image shone brightly, cracks in the internal structure were beginning to show.
The beginning of the end
By the late 1980s, PIA’s fortunes began to wane, largely due to political interference. The airline became a patronage tool for successive governments, who appointed loyalists rather than professionals to top management positions. This undermined strategic decision-making and led to policies driven by short-term political gain rather than long-term sustainability. The frequent leadership changes created a lack of accountability, and the once-mighty airline started to lose its competitive edge.
Overstaffing became one of PIA’s most pressing problems. The workforce swelled far beyond what was needed, and labour unions, emboldened by political connections, resisted any attempts to rationalise staff numbers. Payroll expenses skyrocketed, eating into funds that could have been used to modernise the fleet or enhance services. The inefficiency that ensued made it difficult for the airline to adapt to the rapidly changing global aviation landscape.
Financial mismanagement
By the 1990s, financial mismanagement had become a severe issue. Government bailouts were a regular occurrence, but they were Band-Aid solutions that never addressed the airline’s structural problems. PIA’s fleet was ageing, and plans to acquire newer, more efficient aircraft were often shelved due to a lack of funds. The airline also faced growing competition from more agile, customer-focused airlines in the Gulf and South Asia, further squeezing its market share.
The company’s real estate investments, once seen as strategic, became a financial burden. The maintenance costs of properties like the Roosevelt Hotel in New York began to outweigh their benefits. There was growing debate over whether PIA should sell these assets to alleviate its debt, but political interests often stalled these decisions. What was once a symbol of international prestige became a glaring example of the airline’s inability to manage its resources effectively.
Scandals and safety concerns
PIA’s reputation took a significant hit in 2020 following a catastrophic crash in Karachi that claimed 97 lives. The crash investigation revealed that nearly a third of the airline’s pilots held fraudulent licenses. This scandal rocked the aviation world and led the European Union Aviation Safety Agency (EASA) to ban PIA from operating in Europe. The ban had devastating financial repercussions, cutting off a major source of revenue and further tarnishing the airline’s global standing.
Safety standards were scrutinised, and the findings were alarming. Years of cost-cutting and negligence had led to a severe erosion of training and maintenance protocols. The Karachi crash wasn’t just an isolated incident but a symptom of deep-rooted dysfunction. Public trust plummeted, and even loyal customers began to reconsider their options, further impacting the airline’s bottom line.
The struggle for reform
Faced with mounting criticism and financial losses, the government initiated multiple restructuring efforts. PIA was split into two separate entities—PIA Holding Company and PIA Sales—in an attempt to make its finances more transparent and appealing to investors. Despite these efforts, the airline continued to struggle. The organisational changes were often superficial, failing to address the deep-seated issues of governance and efficiency.
Attempts at privatisation also faced significant obstacles. In October 2024, Blue World City, a real estate consortium, made an embarrassingly low bid of PKR 10 billion for a 60% stake, far below the government’s PKR 85 billion valuation. The failed privatisation underscored the airline’s dire situation. PIA spokesperson Abdullah Hafeez Khan admitted that misinformation and asset valuation issues had complicated the process, leaving investors wary.
Investor scepticism, asset confusion
Investors pointed to inconsistencies in PIA’s financial reports and confusion over the ownership and value of its key assets. Even strategic assets, like the London Heathrow route, failed to inspire confidence due to PIA’s overall instability. The airline’s once-profitable properties were now a tangled web of legal and financial issues, further deterring serious investment.
Critics argue that this lack of transparency is a symptom of broader structural problems. Decades of corruption and inefficiency have eroded trust in the airline’s ability to manage its own affairs, let alone deliver a return on investment. The privatisation debacle became a symbol of how deeply PIA’s issues ran, with many questioning whether the airline could ever be viable again.
A cultural and national impact
Despite its struggles, PIA remains a deeply significant institution in Pakistan. It is woven into the fabric of the nation, representing both the country’s aspirations and its challenges. The airline’s contributions to Pakistan’s global image, its support for sports and culture, and its role in the country’s development cannot be overstated. Yet, the emotional connection many Pakistanis have with PIA has not translated into the will to make the hard choices needed for reform.
As of 2024, PIA’s future remains uncertain. It continues to grapple with enormous debts, a tarnished reputation, and an outdated fleet. Calls for further privatisation or even complete liquidation have grown louder, but the political will to enact these measures is still lacking. The airline’s story serves as a cautionary tale: a lesson in how ambition can be undermined by inefficiency and corruption.
For an airline that once symbolised Pakistan’s hope and promise, the fall has been heartbreaking. Yet, there remains a glimmer of hope. If PIA can undergo true reform—free from political meddling and with a focus on efficiency and customer service—it might one day reclaim its place among the world’s great airlines. Until then, its tale remains a somber reflection of what could have been.